HomeMy WebLinkAbout04-22-19 City Commission Packet Materials - A2. Res 4893, Creating SID 745 for N. Ferguson and W. OakPage 1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Greg Sullivan, City Attorney
SUBJECT: Decision on Protests Regarding Creation of Special Improvement District
(SID) No. 745 and Adoption of Resolution 4893 - a Resolution of the Bozeman City
Commission to Create SID No. 745.
AGENDA ITEM TYPE: Action
MEETING DATE: April 22, 2019
RECOMMENDED MOTION: See the unresolved issues section. If the Commission
determines the move forward with creation of SID 745, the following motion could be made:
After hearing all protests and public comment and finding the protest to be insufficient
under law to bar further proceedings as provided for in Section 3 of the Resolution, and based on oral findings made by Commissioners during the Resolution of Intent and the
two prior discussions on this Resolution and oral findings made this evening, along with
evidence presented during the hearing on the Resolution of Intent and the two prior
hearings on this Resolution, I hereby move to create Special Improvement District No.
745.
The Commission may determine to make other motions as discussed below under unresolved
issues regarding period for payment of assessments, interest rate, and waiver of incidental costs.
The Commission accepted public comment regarding protests and creation of the District on August 6, 2018. This agenda item is for the Commission to discuss and decide upon protests, and
determine whether to create the District by adopting Resolution 4893. The Commission may take
additional public comment.
For the creation of SID 745, prior to making a motion on creation of the SID, the Commission must determine the following:
• whether the waiver of right to protest creation of an SID included in the Annexation
Agreement includes the improvements for which this SID is being created;
• whether Gallatin County is bound by the waiver; and
• whether to overrule Gallatin County’s protest relying upon on the waiver.
I urge the Commission to do the above by motion. As such, a motion could read:
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I hereby move that the waiver included in the Annexation Agreement contained within
the packet material for this agenda item includes the improvements for which this SID is
being created, that the current property is bound by the waiver, and that based on the
totality of the evidence in the record to overrule the property owner’s protest.
RECENT ACTIONS ON RESOLUTION 4893: This agenda item is the third time the City
Commission has considered adoption of Resolution 4893. First, after passing a resolution of
intent to create Special Improvement District (SID) 745 (the “District”) in May of 2018, the City
Commission held a public hearing on a resolution to create the District on June 18, 2018. During the 6/18/18 public hearing no one from the public made comment. The Commission did not vote
on the resolution to create the District; rather, the Commission made the following motion:
“to direct the mayor and city manager, or their assigns, to engage in discussions with
Gallatin County regarding its protest against creation of SID 745 and to adjourn and continue the hearing on protests and this agenda item until the August 6, 2018
Commission meeting.”
After the vote on the above motion, the Commission adjourned the hearing to August 6, 2018.
On August 6th, the Commission met with the Gallatin County Commission in a joint meeting
and made the following motion:
“that the City of Bozeman charge the County the full amount indicated for SID 745, that
we waive the $1,000 administration fee, and we extend the payment period from three years to five years, subject to a mutually agreeable interest rate codified in an interlocal
agreement between the City and County, and directing the City Manager to prepare a
letter and send it to the County Commission reflect that motion.”
After the joint meeting, the City Commission opened the public hearing on protests for creation of the District. A representative of the property owner spoke in opposition to the creation of the
District. No other members of the public provided public comment. After public comment, the
Commission entered discussion on the protests and made the following motion:
“to adjourn adoption of Resolution 4893 to a date uncertain.”
This agenda item is an opportunity for the Commission to decide upon all submitted protests and
determine whether to create the District.
BACKGROUND: As noted above, this is the third time the City Commission has been presented an opportunity to
consider protests and decide whether to create the District. The following are hyperlinks to the
material provided at June 18, 2018 and August 6, 2018 meetings.
The Commission may take any of the following actions:
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• Begin again its discussions regarding the protest received by Gallatin County and
whether to pass upon the protest and create the District;
• Reopen the public hearing to see if Gallatin County withdraws its protest or has any comment; or
• Adjourn the public hearing to a future date.
At its May 21, 2018 meeting the City Commission adopted Resolution 4892, declaring it to be the intention of the City Commission to create Special Improvement District (SID) No. 745 (the “District”) for improvements to West Oak Street and North Ferguson Avenue. In accordance
with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of this resolution
was published in the Bozeman Daily Chronicle on May 27, 2018 and June 3, 2018 and mailed to
the property owner to be assessed. This established the "Protest Period" as May 27, 2018 to June 11, 2018 at 5:00 PM.
Pursuant to Section 7-12-4113, MCA, no further proceedings may be taken on creation of a
special improvement district for a period of six months if the Commission finds sufficient protest
has been made by the owners of property in the district to be assessed for more than 50% of the cost of the improvements. Within the Protest Period, Gallatin County filed a protest with the City Clerk. As the sole property owner in the District, Gallatin County represents 100% percent
of the costs of the improvements to be assessed against property in the District. The costs of the
improvements to be assessed against property pursuant to the special improvement district are
only a portion of the total costs of the improvements for Ferguson Avenue and Oak Street (for more discussion on this please see the fiscal effects section, below).
Attached to this memorandum is a copy of the Annexation Agreement entered into in 2001 by
the predecessor in ownership to Gallatin County. The terms of the Annexation Agreement are
covenants running with the land and are binding on successors in interest (see sects. 23 and 24). Gallatin County is the successor in interest to WBC, LP, the entity that annexed the property to the City. Exhibit A to the Annexation Agreement provides a waiver of right to protest the
creation of special improvement districts for street improvements including paving, curb/gutter,
signals, sidewalk, and storm drainage facilities to Ferguson Road and Oak Street (see pg. 2,
Exhibit A to the Annexation Agreement). Also attached to this memorandum is a copy of an addendum to the purchase agreement entered
into by Gallatin County and the seller of the property wherein Gallatin County recognized it
purchased the property subject to the terms of the Annexation Agreement, including the waiver
of right to protest creation of SIDs. This addendum also recognized that the property may be subject to a SID for improvements to Ferguson Avenue and Oak Street (see sect. 2).
As you may recall, while discussions regarding the County’s contribution to the construction of
Oak Street were occurring in 2017, the County Commission required the City to pay $161,606
for the purchase of a public use easement and temporary construction easement on Oak Street to complete the construction.
Pursuant to state law, the City Commission must “hear and pass upon all protests.” 7-12-4112,
MCA. Prior to adopting a resolution creating a special improvement district the Commission
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must determine whether protest received are valid and sufficient to bar proceeding with creation
of the district or whether protests are insufficient or should be overruled.
For the creation of SID 745, the Commission must determine the following:
• whether the waiver of right to protest creation of an SID included in the Annexation
Agreement includes the improvements for which this SID is being created;
• whether Gallatin County is bound by the waiver; and
• whether to overrule Gallatin County’s protest relying upon on the waiver.
City Manager Surratt informed the property owner of this meeting by letter dated April 11, 2019.
See attached.
FISCAL EFFECTS:
Current Plans: The City’s adopted Capital Improvement Plan for FY18-22 includes both of these
street segments (SIF046 and SIF080), with a portion of the costs to be assessed to the Gallatin
County Regional Park property through a special improvement district. Costs: The total cost of the improvements is $2,152,611.04. The City has committed $902,424.65
from the Street Impact Fee Fund and Flanders Mill Subdivision has committed $347,731.74 for its
share of the improvements to North Ferguson Avenue. The remaining $902,424.65 is to be funded
by the special improvement district, if created. In addition, the District would be responsible for an estimated $1,000 in incidental costs related to the creation of the District for a total of $903,424.65.
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final cost of improvements $946,255.70
City Share (1/3 of improvements) $299,246.98
SID Share (1/3 of improvements) $299,246.98
Flanders Mill Subdivision Share $347,731.74
(1/3 of improvements + 100% of cost of asphalt trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final cost of improvements $1,206,355.34
City Share (50% of improvements) $603,177.67
SID Share (50% of improvements) $603,177.67
TOTAL cost of improvements (Oak & Ferguson) $2,152,611.04
TOTAL SID share of improvements (Oak & Ferguson)
TOTAL SID amount (including incidental expenses
expenses)
$902,424.65
$903,424.65
Financing: To fund the costs of the District’s Share of the Improvements, a bond or warrant
would be drawn against the District in the amount of $903,424.65, payable from special
assessments to be levied against property in the District semi-annually for three years in an
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amount to equal the principal of $903,424.65 plus simple interest at an annual rate as allowed by
Sect. 7-12-4189, MCA.
UNRESOLVED ISSUES:
At its May 21, 2018 meeting, during the adoption of Resolution 4892, the resolution of intent to
create SID 745, the Commission adopted the following amendment to the main motion: “that
prior to the assessment of the construction costs associated with SID 745 to the district, the City
of Bozeman will seek to resolve any outstanding issues with Gallatin County via a working group with equal representation from both entities.”
I understand Gallatin County believes that further discussions with the City regarding the
County’s share of costs related to the improvements is not possible if the City Commission has
adopted a final resolution creating a new special improvement district. I have no other
information as to the underlying rationale for this position.
Sect. 7-12-4112, MCA, requires the City Commission, at the next regular meeting after the close
of the protest period, to “proceed to hear and pass upon all protests…” This statute also provides
the Commission “may adjourn said hearing from time to time.” The effect of adjournment is to
allow protestants the right to withdraw a protest at any time before final action on the resolution creating the district. I understand representative from the City and County have discussed
possible resolution and the County has never directly and formally responded to the City
Commission’s August 9, 2018 letter.
Period of Payment of Assessments: Section 8 of the Resolution of Intent (Resolution 4892) specifies the period of repayment for the property owner is a term not exceeding three years.
During the joint meeting with the Gallatin County Commission on August 6, 2018, the
Commission voted to offer the County five years for repayment. As noted, the County has not
formally responded to that offer. If the Commission desires to adjust the period from three years
(as adopted in the Resolution of Intent) to five years, the Commission must amend the motion of creation. See Section 5.01, Resolution 4893.
Incidental Costs and Interest Rate: Section 6 of the Resolution of Intent includes $1,000 in
incidental costs. During the August 6th joint meeting the Commission by motion offered to waive
these costs. If the Commission desires to do so it must amend the main motion to reflect waiver of the $1,000 incidental costs. As for interest, Section 5.01 of Resolution 4893 provides the City
will charge the property owner “simple interest at an annual rate as allowed by Montana Code
Annotated sect. 7-12-4189.” The interest rate chargeable to the property owner will be
approximately 1.5% - 2.0%.
ALTERNATIVES: As suggested by the City Commission.
Attachments:
Resolution 4893, Creation of SID 745 Letter from City Manager Surratt to Gallatin County, dated August 9, 2018
Letter from City Manager Surratt to Gallatin County, dated April 11, 2019 City Commission packet material from August 6, 2018, which includes:
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Staff Memorandum dated 8/6/18 Correspondence between Mayor Andrus and the Gallatin County Commission
Resolution 4893, Creation of SID 745 Letter of Protest from Gallatin County
Annexation Agreement including Waiver of Right to Protest SID Addendum to Gallatin County’s Buy/Sell Agreement for the Regional Park
City commission packet material from adoption of Resolution of Intent to Create SID 745
Links to video: Resolution of Intent (May 21, 2018)
Resolution of Creation (June 18, 2018) Joint Meeting of City Commission and County Commission (August 6, 2018)
Resolution of Creation (August 6, 2018)
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RESOLUTION NO. 4893
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 745;
CREATING THE DISTRICT FOR THE PURPOSE OF PURCHASING CERTAIN
LOCAL IMPROVEMENTS IN AND ABOUT NORTH FERGUSON AVENUE
BETWEEN WEST OAK STREET AND BAXTER LANE AND WEST OAK STREET
BETWEEN DAVIS LANE AND NORTH FERGUSON AVENUE, AND FINANCING THE
COSTS THEREOF AND INCIDENTAL THERETO.
WHEREAS, on the 21st day of May, 2018, the City Commission (the “Commission”) of
the City of Bozeman, Montana (the “City”) adopted Commission Resolution No. 4892 (the
“Resolution of Intention”), stating its intent to create Special Improvement District No. 745 (the
“District”) to finance the costs of various improvements within the District as described therein
(the “Improvements”); and
WHEREAS, as set forth in the Resolution of Intention, the Commission committed other
revenue sources to the costs of the project; and
WHEREAS, on May 27, 2018 and June 3, 2018, the City Clerk did publish a Notice of
Passage of the Resolution of Intention to Create SID No. 745 in accordance with Sect. 7-12-4106,
MCA, and mailed said notice to each person, firm, or corporation or the agent of the person, firm
or corporation having real property within the proposed District; and
WHEREAS, the Bozeman City Commission conducted a public hearing on protests
submitted to the creation of the District on June 18, 2018 and did pass on all such protests having
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found the written protests not sufficient to bar the Commission from proceeding with creation of
the District.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, as follows:
Section 1
Passage of Resolution of Intention. This Commission, on May 21, 2018, adopted the Resolution
of Intention, pursuant to which this Commission declared its intention to create the District,
under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, for the
purpose of paying costs of certain local improvements within the District described generally
therein (the “Improvements”), and paying costs incidental thereto, including costs associated
with the creation and administration of the District.
Section 2
Notice of Passage of the Resolution of Intent and Public Hearing on Protests. Notice of passage
of the Resolution of Intention was duly published and mailed in all respects in accordance with
law, and on June 18, 2018, this Commission conducted a public hearing on written protests
submitted by property owners against the creation of the District and the making of the
Improvements. The public hearing occurred on the date of the first regular meeting of the
Commission following the expiration of the period ending 15 days after the first date of
publication of the notice of passage of the Resolution of Intention (the “Protest Period”).
Section 3
Protests. Within the Protest Period, protests were filed with the City Clerk by the only property
owner within the district, representing 100% percent of the total costs of the Improvements to be
assessed against properties in the District, as proposed. The Commission hereby finds that the
protest is invalid on the basis that a waiver of right to protest creation of a special improvement
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district was executed by the then-owner of the property in consideration of receiving approval for
annexation of the property on October 19, 2001. That property owner specifically waived for
itself, and its successors and assigns, the right to protest the creation of one or more special
improvement districts for street improvements including paving, curb/gutter, signals, sidewalk,
and storm drainage facilities to Baxter Lane, Davis Lane/Fowler Road, Deadman’s Gulch Road,
Ferguson Road and Oak Street; trunk water main and appurtenances to serve the property; trunk
sewer mains and sewage lift stations to serve the property; or to make any written protest against
the size or area or creation of the district to be assessed in response to a duly passed resolution of
intention to create one or more special improvement districts which would include the property.
The waiver was recorded with the Gallatin County Clerk and Recorder’s Office on November
14, 2001, Document No. 2053095.
Section 4
Creation of the District; Insufficiency of Protests. The Commission hereby creates the District
on the terms and conditions set forth herein and otherwise in accordance with the Resolution
of Intention, as modified hereby. The protests against the creation of the District or the
making of the Improvements filed during the Protest Period are hereby found to be
insufficient. The findings and determinations made in the Resolution of Intention, including,
without limitation, those relating to benefits conferred, assessment methodology, cost of
improvements, method of financing, and costs associated with the creation and administration of
the District, are hereby ratified and confirmed. The Commission finds the Improvements preserve
public safety and provide public benefit by expanding the transportation system, improving
transportation system connectivity and traffic flow, providing pedestrian ramps and traffic
control signage, and providing through lanes and drive approaches for those who reside along
these streets or use these streets to access their residences, businesses, places of work and
recreation. The Commission further finds the Improvements especially benefit the property in the
District by providing for the construction of all street facilities required by the Bozeman
Municipal Code. In addition, the Improvements to West Oak Street and North Ferguson Avenue
adjacent to the Park improve public safety, especially for users of the Park, by the installation of
through lanes, sidewalks, parking lot approaches, pedestrian ramps and crosswalks, traffic
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control signage and pavement striping. West Oak Street had no sidewalk adjacent to the Park, so
the installation of a sidewalk there is an improvement to the Park that will especially benefit its
pedestrian users by improving pedestrian safety and access to the Park by pedestrians. The
construction of North Ferguson Avenue adjacent to the Park, along with installation of sidewalk
and other related improvements, benefits the Park and especially benefits Park users by
improving safety and adding to accessibility.
Section 5
Purchase of Improvements.
5.01. Declaration of Intent. The City reasonably expects to purchase the Improvements using the
proceeds of a bond or warrant drawn against the District in an estimated maximum aggregate
principal amount of $903,424.65 after the date of payment of the costs of the Improvements. All
reimbursed expenditures shall be capital expenditures, a cost of issuance of the bond or warrant,
or other expenditures eligible for reimbursement.
The Commission intends to assess the District over a three year period in an amount equal to the
principal of $903,424.65 plus simple interest at an annual rate as allowed by Montana Code
Annotated sect. 7-12-4189.
5.02. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on
a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a
long-term basis or otherwise set aside) to provide permanent financing for the expenditures
related to the Improvements, other than pursuant to the bond or warrant. The statement of
intent contained in this resolution, therefore, is determined to be consistent with the City's
budgetary and financial circumstances as they exist or are reasonably foreseeable on the date
hereof.
5.03. Payments. The City's financial officer shall be responsible for making the payments
described in the Resolution of Intention being generally the transfer of the appropriate amount
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of proceeds of the bond or warrant to reimburse the source of temporary financing used by
the City to make prior payment of the costs of the Improvements. Each payment shall be
evidenced by an entry on the official books and records of the City maintained for the bond
or warrant or the Improvements and shall specifically identify the actual original expenditure
being paid.
PASSED, ADOPTED, AND APPROVED by the C ity Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 22nd day of April, 2019.
__________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
_____________________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
__________________________________
GREG SULLIVAN
City Attorney
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August 9, 2018 Dear Gallatin County Commission: Thank you for meeting with the Bozeman City Commission this past Monday, August 6, 2018 regarding the County’s obligations for payment of costs related to improvements to Oak Street and Ferguson Avenue adjacent to the County’s Regional Park. The Bozeman City Commission appreciates your recognition of the obligations incurred when it purchased the Regional Park in the early 2000s. The City provided information to you prior to this meeting in direct response to your written questions and provided significant information in response to your questions during the meeting. At this time, it appears the only issue not agreed upon by the City and County is the terms of an agreement including the amount to be paid by the County and length of time for the County to pay. As you know, the Bozeman City Commission unanimously adopted the following motion as a good faith effort to resolve the County’s dispute: that the City of Bozeman charge the County the full amount indicated for SID 745, that we waive the $1,000 administration fee, and we extend the payment period from three years to five years, subject to a mutually agreeable interest rate codified in an interlocal agreement between the City and the County, and directing the City Manager to prepare a letter and send it to the County Commission reflecting the motion. Also, during the item immediately following our discussion the City Commission voted 4-1 to adjourn adoption of Resolution 4893 creating Special Improvement District 745 to sometime later this fall. The City is interested in resolving this dispute. Please let me know no later than December 6, 2018 whether the County accepts the City’s proposal. Finally, if the County rejects the City’s proposal I ask you consider providing the City Commission a written proposal for its consideration. As stated this past Monday, we look forward to continuing to work with Gallatin County. Sincerely, Andrea Surratt City Manager
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney
SUBJECT: Hearing on Protests Regarding Creation of Special Improvement District
(SID) No. 745 and Adoption of Resolution 4893 - a Resolution of the Bozeman City Commission to Create SID No. 745.
AGENDA ITEM TYPE: Action
MEETING DATE: August 6, 2018
RECOMMENDED MOTION: See the unresolved issues section. If the Commission
determines the move forward with creation of SID 745 the following motion could be made:
“After hearing all protests, and finding them to be insufficient under law to bar further
proceedings, I hereby move to adopt Resolution 4893 creating Special Improvement District No. 745.”
The Commission may determine to make other motions as discussed below.
RECENT ACTIONS: On June 21, 2018, the City Commission held a public hearing on a resolution to create Special Improvement District 745 (the “District”). During the public hearing
no one from the public made comment. The Commission did not vote on the resolution to create
the District; rather, the Commission made the following motion:
“to direct the mayor and city manager, or their assigns, to engage in discussions with Gallatin County regarding its protest against creation of SID 745 and to adjourn and
continue the hearing on protests and this agenda item until the August 6, 2018
Commission meeting.”
After the vote on the above motion, the Commission adjourned the hearing to August 6th.
Attached you find a series of letters between Mayor Andrus and the chair of the Gallatin County
Commission.
The Commission may take any of the following actions:
• Begin again its discussions regarding the protest received by Gallatin County and
whether to pass upon the protest and create the District;
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• Reopen the public hearing to see if Gallatin County withdraws its protest or has any
comment; or
• Adjourn the public hearing to a future date.
BACKGROUND:
I provided the following to the Commission for its June 18, 2018 public hearing on creation of SID 745. The remainder of this memo, including the attachments, is the same as the memo provided to you from June 18th.
At its May 21, 2018 meeting the City Commission adopted Resolution 4892, declaring it to be
the intention of the City Commission to create Special Improvement District (SID) No. 745 (the “District”) for improvements to West Oak Street and North Ferguson Avenue. In accordance with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of this resolution
was published in the Bozeman Daily Chronicle on May 27, 2018 and June 3, 2018 and mailed to
the property owner to be assessed. This established the "Protest Period" as May 27, 2018 to June
11, 2018 at 5:00 PM. Pursuant to Section 7-12-4113, MCA, no further proceedings may be taken on creation of a
special improvement district for a period of six months if the Commission finds sufficient protest
has been made by the owners of property in the district to be assessed for more than 50% of the
cost of the improvements. Within the Protest Period, Gallatin County filed a protest with the City Clerk. As the sole property owner in the District, Gallatin County represents 100% percent of the costs of the improvements to be assessed against property in the District. The costs of the
improvements to be assessed against property pursuant to the special improvement district are
only a portion of the total costs of the improvements for Ferguson Avenue and Oak Street (for
more discussion on this please see the fiscal effects section, below). Attached to this memorandum is a copy of the Annexation Agreement entered into in 2001 by
the predecessor in ownership to Gallatin County. The terms of the Annexation Agreement are
covenants running with the land and are binding on successors in interest (see sects. 23 and 24).
Gallatin County is the successor in interest to WBC, LP, the entity that annexed the property to the City. Exhibit A to the Annexation Agreement provides a waiver of right to protest the creation of special improvement districts for street improvements including paving, curb/gutter,
signals, sidewalk, and storm drainage facilities to Ferguson Road and Oak Street (see pg. 2,
Exhibit A to the Annexation Agreement).
Also attached to this memorandum is a copy of an addendum to the purchase agreement entered into by Gallatin County and the seller of the property wherein Gallatin County recognized it
purchased the property subject to the terms of the Annexation Agreement, including the waiver
of right to protest creation of SIDs. This addendum also recognized that the property may be
subject to a SID for improvements to Ferguson Avenue and Oak Street (see sect. 2). Pursuant to state law, the City Commission must “hear and pass upon all protests.” 7-12-4112,
MCA. Prior to adopting a resolution creating a special improvement district the Commission
must determine whether protest received are valid and sufficient to bar proceeding with creation
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of the district or whether protests are insufficient or should be overruled. For the creation of SID
745, the Commission must determine the following:
• whether the waiver of right to protest creation of an SID included in the Annexation Agreement includes the improvements for which this SID is being created;
• whether Gallatin County is bound by the waiver; and
• whether to overrule Gallatin County’s protest relying upon on the waiver.
FISCAL EFFECTS:
Current Plans: The City’s adopted Capital Improvement Plan for FY18-22 includes both of these
street segments (SIF046 and SIF080), with a portion of the costs to be assessed to the Gallatin
County Regional Park property through a special improvement district.
Costs: The total cost of the improvements is $2,152,611.04. The City has committed $902,424.65
from the Street Impact Fee Fund and Flanders Mill Subdivision has committed $347,731.74 for its
share of the improvements to North Ferguson Avenue. The remaining $902,424.65 is to be funded
by the special improvement district, if created. In addition, the District would be responsible for an estimated $1,000 in incidental costs related to the creation of the District for a total of
$903,424.65.
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final cost of improvements $946,255.70
City Share (1/3 of improvements) $299,246.98
SID Share (1/3 of improvements) $299,246.98
Flanders Mill Subdivision Share $347,731.74
(1/3 of improvements + 100% of cost of asphalt trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final cost of improvements $1,206,355.34
City Share (50% of improvements) $603,177.67
SID Share (50% of improvements) $603,177.67
TOTAL cost of improvements (Oak & Ferguson) $2,152,611.04
TOTAL SID share of improvements (Oak & Ferguson)
TOTAL SID amount (including incidental expenses
expenses)
$902,424.65
$903,424.65
Financing: To fund the costs of the District’s Share of the Improvements, a bond or warrant
would be drawn against the District in the amount of $903,424.65, payable from special
assessments to be levied against property in the District semi-annually for three years in an
amount to equal the principal of $903,424.65 plus simple interest at an annual rate as allowed by Sect. 7-12-4189, MCA.
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UNRESOLVED ISSUES:
At its May 21, 2018 meeting, during the adoption of Resolution 4892, the resolution of intent to
create SID 745, the Commission adopted the following amendment to the main motion: “that prior to the assessment of the construction costs associated with SID 745 to the district, the City of Bozeman will seek to resolve any outstanding issues with Gallatin County via a working group
with equal representation from both entities.”
I understand Gallatin County believes that further discussions with the City regarding the County’s share of costs related to the improvements is not possible if the City Commission has adopted a final resolution creating a new special improvement district. I have no other
information as to the underlying rationale for this position.
Sect. 7-12-4112, MCA, requires the City Commission, at the next regular meeting after the close of the protest period, to “proceed to hear and pass upon all protests…” This statute also provides the Commission “may adjourn said hearing from time to time.” The effect of adjournment is to
allow protestants the right to withdraw a protest at any time before final action on the resolution
creating the district. The Commission may wish to consider whether adjourning the hearing on
protests to allow for discussions with Gallatin County will facilitate the intent behind its May 21st motion. If so, I suggest that after the Commission accepts public comment and prior to
closing the public hearing, the Commission by motion direct one of its members and the city
manager to commence discussions regarding Gallatin County’s protest. If the Commission
determines to engage in discussions with Gallatin County prior to taking action on the resolution
creating the district the Commission must “adjourn” the public hearing to a date certain. If the Commission adjourns the public hearing to other than a date certain the Commission must
provide notice of the hearing in the manner required by law.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Correspondence between Mayor Andrus and the Gallatin County Commission Resolution 4893, Creation of SID 745
Letter of Protest from Gallatin County Annexation Agreement including Waiver of Right to Protest SID Addendum to Gallatin County’s Buy/Sell Agreement for the Regional Park
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July 11, 2018
The Honorable Commissioner Steve White
311 West Main, Room 306
Bozeman, MT 59715
Re: Meeting about Oak and Ferguson
Dear Chairman White,
I am in receipt of your letter of July 2, 2018. As you know, I have been directed by
the Bozeman City Commission to meet with you with the intention of resolving
Gallatin County’s dispute with the City of Bozeman regarding the County’s
participation in payment of the costs of improvements to Oak Street and Ferguson
Avenue fronting the County’s Regional Park. Your refusal to meet with me one on
one is disappointing.
The City expects property owners, including itself and other governmental entities,
to pay their fair share of road improvements that improve the access, safety, and
value of their properties. As you are no doubt aware, the formula the City uses to
pay for road improvements has been used by the City and other governmental
entities for years. I’ve attached to this letter two interlocal agreements between
Bozeman School District 7 and the City regarding the cost allocation of the cost of
street improvements related to the second Bozeman High School. The City has, for
several years now, asked the County to do the same with roads at the Regional Park.
When Gallatin County purchased the Regional Park, County Commissioners clearly
knew purchasing the property was subject to the terms of the annexation agreement
between the County’s predecessor and the City. The City recognizes and appreciates
the County’s efforts over time to get Baxter Meadows Development L.P. (Baxter
Meadows) to the pay the costs of these improvements. However, the County’s
efforts, from the addendum to the purchase and sale agreement through the lawsuit
the County filed against Baxter Meadows, and the invoices the County sent Baxter
Meadows, does nothing to obviate the County, as the successor in interest to Baxter
Meadows, to comply with the terms of the annexation agreement.
The authority of the City to require property owners to pay for the costs for street
improvements is not in question. If the City creates SID 745 it will be the City’s 745th
SID. As Gallatin County has recognized, if a SID is not used, Gallatin County remains
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obligated to pay the costs of these improvements through an alternative financing
method. It is that simple.
We have many mutual constituents that would like to see this issue resolved. Your
desire to have the two commissions meet in a joint session prior to any preliminary
work being done to resolve the issue is an open invitation for political theater on
both sides.
I would respectfully ask one more time that you meet with me to resolve these
issues. At that meeting, I can help you understand information related to the
questions you pose in your letter. Please know Gallatin County already has much of
that information through the recent litigation it filed against the City. The taxpayers
expect no less from the leaders of our two commissions.
Sincerely,
Cynthia Andrus, Mayor
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COMMISSION RESOLUTION NO. 4893
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 745;
CREATING THE DISTRICT FOR THE PURPOSE OF PURCHASING CERTAIN
LOCAL IMPROVEMENTS IN AND ABOUT NORTH FERGUSON AVENUE
BETWEEN WEST OAK STREET AND BAXTER LANE AND WEST OAK STREET
BETWEEN DAVIS LANE AND NORTH FERGUSON AVENUE, AND FINANCING THE
COSTS THEREOF AND INCIDENTAL THERETO.
WHEREAS, on the 21st day of May, 2018, the City Commission (the “Commission”) of
the City of Bozeman, Montana (the “City”) adopted Commission Resolution No. 4892 (the
“Resolution of Intention”), stating its intent to create Special Improvement District No. 745 (the
“District”) to finance the costs of various improvements within the District as described therein
(the “Improvements”); and
WHEREAS, as set forth in the Resolution of Intention, the Commission committed other
revenue sources to the costs of the project; and
WHEREAS, on May 27, 2018 and June 3, 2018, the City Clerk did publish a Notice of
Passage of the Resolution of Intention to Create SID No. 745 in accordance with Sect. 7-12-4106,
MCA, and mailed said notice to each person, firm, or corporation or the agent of the person, firm
or corporation having real property within the proposed District; and
WHEREAS, the Bozeman City Commission conducted a public hearing on protests
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Resolution 4893, Creation of SID 745 – N. Ferguson Ave and W. Oak Street
Page 2 of 5
submitted to the creation of the District on June 18, 2018 and did pass on all such protests having
found the written protests not sufficient to bar the Commission from proceeding with creation of
the District.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, as follows:
Section 1
Passage of Resolution of Intention. This Commission, on May 21, 2018, adopted the Resolution
of Intention, pursuant to which this Commission declared its intention to create the District, under
Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, for the purpose
of paying costs of certain local improvements within the District described generally therein (the
“Improvements”), and paying costs incidental thereto, including costs associated with the creation
and administration of the District.
Section 2
Notice of Passage of the Resolution of Intent and Public Hearing on Protests. Notice of passage of
the Resolution of Intention was duly published and mailed in all respects in accordance with law,
and on June 18, 2018, this Commission conducted a public hearing on written protests submitted
by property owners against the creation of the District and the making of the Improvements. The
public hearing occurred on the date of the first regular meeting of the Commission following the
expiration of the period ending 15 days after the first date of publication of the notice of passage
of the Resolution of Intention (the “Protest Period”).
Section 3
Protests. Within the Protest Period, protests were filed with the City Clerk by the only property
owner within the district, representing 100% percent of the total costs of the Improvements to be
assessed against properties in the District, as proposed. The Commission hereby finds that the
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Resolution 4893, Creation of SID 745 – N. Ferguson Ave and W. Oak Street
Page 3 of 5
protest is invalid on the basis that a waiver of right to protest creation of a special improvement
district was executed by the then-owner of the property in consideration of receiving approval for
annexation of the property on October 19, 2001. That property owner specifically waived for itself,
and its successors and assigns, the right to protest the creation of one or more special improvement
districts for street improvements including paving, curb/gutter, signals, sidewalk, and storm
drainage facilities to Baxter Lane, Davis Lane/Fowler Road, Deadman’s Gulch Road, Ferguson
Road and Oak Street; trunk water main and appurtenances to serve the property; trunk sewer mains
and sewage lift stations to serve the property; or to make any written protest against the size or
area or creation of the district to be assessed in response to a duly passed resolution of intention to
create one or more special improvement districts which would include the property. The waiver
was recorded with the Gallatin County Clerk and Recorder’s Office on November 14, 2001,
Document No. 2053095.
Section 4
Creation of the District; Insufficiency of Protests. The Commission hereby creates the District
on the terms and conditions set forth herein and otherwise in accordance with the Resolution of
Intention, as modified hereby. The protests against the creation of the District or the making
of the Improvements filed during the Protest Period are hereby found to be insufficient. The
findings and determinations made in the Resolution of Intention, including, without limitation,
those relating to benefits conferred, assessment methodology, cost of improvements, method of
financing, and costs associated with the creation and administration of the District, are hereby
ratified and confirmed. The Commission finds the Improvements preserve public safety and
provide public benefit by expanding the transportation system, improving transportation system
connectivity and traffic flow, providing pedestrian ramps and traffic control signage, and providing
through lanes and drive approaches for those who reside along these streets or use these streets to
access their residences, businesses, places of work and recreation. The Commission further finds
the Improvements especially benefit the property in the District by providing for the construction
of all street facilities required by the Bozeman Municipal Code. In addition, the Improvements to
West Oak Street and North Ferguson Avenue adjacent to the Park improve public safety, especially
for users of the Park, by the installation of through lanes, sidewalks, parking lot approaches,
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Resolution 4893, Creation of SID 745 – N. Ferguson Ave and W. Oak Street
Page 4 of 5
pedestrian ramps and crosswalks, traffic control signage and pavement striping. West Oak Street
had no sidewalk adjacent to the Park, so the installation of a sidewalk there is an improvement to
the Park that will especially benefit its pedestrian users by improving pedestrian safety and access
to the Park by pedestrians. The construction of North Ferguson Avenue adjacent to the Park, along
with installation of sidewalk and other related improvements, benefits the Park and especially
benefits Park users by improving safety and adding to accessibility.
Section 5
Purchase of Improvements.
5.01. Declaration of Intent. The City reasonably expects to purchase the Improvements using the
proceeds of a bond or warrant drawn against the District in an estimated maximum aggregate
principal amount of $903,424.65 after the date of payment of the costs of the Improvements. All
reimbursed expenditures shall be capital expenditures, a cost of issuance of the bond or warrant,
or other expenditures eligible for reimbursement.
The Commission intends to assess the District over a three year period in an amount equal to the
principal of $903,424.65 plus simple interest at an annual rate as allowed by Montana Code
Annotated sect. 7-12-4189.
5.02. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on
a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a
long-term basis or otherwise set aside) to provide permanent financing for the expenditures
related to the Improvements, other than pursuant to the bond or warrant. The statement of intent
contained in this resolution, therefore, is determined to be consistent with the City's budgetary
and financial circumstances as they exist or are reasonably foreseeable on the date hereof.
5.03. Payments. The City's financial officer shall be responsible for making the payments
described in the Resolution of Intention being generally the transfer of the appropriate amount
of proceeds of the bond or warrant to reimburse the source of temporary financing used by the
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Resolution 4893, Creation of SID 745 – N. Ferguson Ave and W. Oak Street
Page 5 of 5
City to make prior payment of the costs of the Improvements. Each payment shall be evidenced
by an entry on the official books and records of the City maintained for the bond or warrant
or the Improvements and shall specifically identify the actual original expenditure being paid.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 6th day of August, 2018.
__________________________________
CYNTHIA L. ANDRUS Mayor ATTEST:
________________________________________ ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
__________________________________
GREG SULLIVAN
City Attorney
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Rick Hixson, City Engineer
Craig Woolard, Director of Public Works
SUBJECT: Adoption of Resolution No. 4892, a Resolution of Intent of the Bozeman
City Commission to create Special Improvement District (SID) 745.
AGENDA ITEM TYPE: Action
MEETING DATE: May 21, 2018
RECOMMENDED MOTION: I hereby move to adopt Resolution No. 4892 declaring it to be
the City's intention to create Special Improvement District (SID) No. 745.
BACKGROUND:
The City Commission created SID 740 on April 17, 2017 for the purpose of undertaking
improvements to West Oak Street and North Ferguson Avenue. The boundaries of SID 740
include the Gallatin County Regional Park property fronting these two streets and is more particularly described in Resolution 4771, the resolution of intent to create SID 740. Shortly
after creation of SID 740, Gallatin County, the sole property owner within the district, sued the
City alleging the City’s creation of the SID was improper. Construction of the improvements
proceeded while the litigation took its course.
Construction of the improvements is now complete and final costs are now known. The final
costs of construction are significantly lower than the estimated costs when SID 740 was created.
The district’s share of actual costs is $902,424.65, $160,713.85 or more than 15% lower than the
estimate of $1,062,138.50 described in Resolution No. 4771. Because of this significant
difference in costs, and because the City has not yet levied the special assessment authorized by the creation of SID 740, we recommend dissolving SID 740 and creating a new SID that
accurately reflects the costs to be assessed.
Proposed Resolution No. 4892, a Resolution of Intent to Create SID 745, is the first step in the
process of creating an SID pursuant to the City’s authority under the Montana Code Annotated
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(MCA), Chapter 7-12, part 41. The purpose of the Resolution of Intent to Create the SID is to inform the public of the City's intention to create an SID to raise funds from adjacent property owners to pay for a portion of the existing improvements. This resolution does not create the
SID. Should this resolution be approved, notice of passage of the resolution will be published
and mailed to the property owner pursuant to state law. The City Commission will then hold a
public hearing to pass upon any protest received. The resolution must do the following: 1) designate the number of the district; 2) describe the
boundaries thereof; 3) state the general character of the improvements and the cost; and 4) state
the method of assessment to be used.
The number of this SID will be 745. The boundaries of the district include the Gallatin County Regional Park Property fronting West Oak Street and North Ferguson Avenue. The legal
description of the property is S03, T02 S, R05 E, C.O.S. 2202B, acres 97.59, Tract 3A-1
remainder.
The general character of the existing improvements consists of the construction of North Ferguson Avenue from West Oak Street to Baxter Lane, including: installation of storm drainage
utilities, street lighting, curb and gutter, asphalt, and pedestrian ramps. The existing
improvements also include the widening of West Oak Street from Davis Lane to North Ferguson
Avenue to the City’s arterial standard, including storm drainage improvements, installation of curbing, street lighting, and pedestrian ramps.
Montana law provides four methods of assessment to allocate the District’s share of the costs of
improvement among property owners in the District: the area method which is based on the area
of the lot; the frontage method which is based on the lots’ width fronting the street; the assessed valuation method which uses the assessed valuation of the parcel; and the equal shares method. Staff proposes the area method of assessment for this SID.
The proposed schedule for SID 745 is as follows:
Resolution of Intent to Create May 21, 2018 Publish Notice of Public Hearing May 27 and June 2, 2018
(15-day protest period begins upon first publication of the notice of passage of the resolution of
intent)
End of Protest Period June 11, 2018 Public Hearing on protests June 18, 2018 Resolution of Creation June 18, 2018
FISCAL EFFECTS:
Current Plans: The City’s adopted Capital Improvement Plan for FY18-22 includes both of these street segments (SIF046 and SIF080), with a portion of the costs to be assessed to the Gallatin
County Regional Park property through a special improvement district.
Costs: The total cost of the improvements is $2,152,611.04. The City has committed $902,424.65 from the Street Impact Fee Fund and Flanders Mill Subdivision has committed $347,731.74 for its
568173
share of the improvements to North Ferguson Avenue. The remaining $902,424.65 is to be funded by the special improvement district. In addition, the District will be responsible for an estimated $1,000 in incidental costs related to the creation of the District for a total of $903,424.65.
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final cost of improvements $946,255.70
City Share (1/3 of improvements) $299,246.98
SID Share (1/3 of improvements) $299,246.98
Flanders Mill Subdivision Share $347,731.74
(1/3 of improvements + 100% of cost of asphalt trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final cost of improvements $1,206,355.34
City Share (50% of improvements) $603,177.67
SID Share (50% of improvements) $603,177.67
TOTAL cost of improvements (Oak & Ferguson) $2,152,611.04
TOTAL SID share of improvements (Oak & Ferguson)
TOTAL SID amount (including incidental expenses
expenses)
$902,424.65
$903,424.65
Financing: To fund the costs of the District’s Share of the Improvements, a bond or warrant will
be drawn against the District in the amount of $903,424.65, payable from special assessments to
be levied against property in the District semi-annually for three years in an amount to equal the
principal of the loan of $903,424.65 plus simple interest at an annual rate as allowed by Montana
Code Annotated sect. 7-12-4189.
UNRESOLVED ISSUES:
None identified.
ALTERNATIVES: As suggested by the City Commission.
Attachment: Resolution No. 4892
569174
Page 1 of 8
COMMISSION RESOLUTION NO. 4892
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 745; DECLARING IT TO
BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR
THE PURPOSE OF PURCHASING CERTAIN LOCAL IMPROVEMENTS AND
FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO, AND ONCE
CREATED TO LEVY THE SPECIAL ASSESSMENTS ON BENEFITTED PROPERTY
IN THE DISTRICT.
BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman,
Montana (the “City”), as follows:
Section 1
Intention to Create District. The City proposes to purchase, on behalf of a special improvement
district to be created, upon such terms as the Commission deems just, certain local improvements
to benefit certain property located in the City. The improvements consist of roadway and related
improvements to West Oak Street between North Ferguson Avenue and Davis Lane and roadway
and related improvements to North Ferguson Avenue between West Oak Street and Baxter Lane,
including: widening of the road, installation of curbing, storm drainage improvements, street
lighting, and pedestrian ramps, as more particularly described in Section 5 (the “Improvements”).
The total costs of the Improvements are $2,152,611.04. Pursuant to Resolution No. 4507, the City
has committed $902,424.65 from the City’s Street Impact Fee Fund and the Flanders Mill
Subdivision has committed $347,731.74 for its share of the improvements to North Ferguson
Avenue, leaving $902,424.65 of the costs of the Improvements to be funded through the District
(hereinafter referred to as the District's Share of the Improvements). It is the intention of this
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Resolution 4892, Resolution of Intent to Create SID 745
Page 2 of 8
Commission to create and establish in the City under Montana Code Annotated, Title 7, Chapter
12, Parts 41 and 42, as amended, a special improvement district (the “District”) for the purpose of
paying the District's Share of the Improvements and paying costs incidental thereto, including costs
associated with the creation and administration of the District (collectively the “Incidental Costs”).
The total estimated cost of the District's Share of the Improvements, including such Incidental
Costs, is $903,424.65.
To fund the costs of the District’s Share of the Improvements, the Commission intends to
use a bond or warrant drawn against the District in the amount of $903,424.65, payable from
special assessments to be levied against property in the District, which property will be specially
benefited by the Improvements in an amount not less than $903,424.65. In doing so, the
Commission intends to assess the District in the manner described in Section 7, below, in an
amount to equal the principal amount of $903,424.65 plus simple interest at an annual rate as
allowed by §7-12-4189, MCA.
Section 2
Number of District. The District, if the same shall be created and established, shall be known and
designated as Special Improvement District No. 745 of the City of Bozeman, Montana.
Section 3
Boundaries of District. The limits and boundaries of the District are depicted on a map attached as
Exhibit A hereto (which is hereby incorporated herein and made a part hereof) and includes all the
properties within the boundaries of the District, the legal description of which is contained in
Exhibit B hereto (which is hereby incorporated herein and made a part hereof), which boundaries
are designated and confirmed as the boundaries of the District.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 3 of 8
Section 4
Benefitted Property. The District and territory included within the limits and boundaries described
in Section 3 and as shown on Exhibit A and Exhibit B (also known as the Gallatin County Regional
Park; hereinafter referred to as the “Park”) is hereby declared to be the special improvement district
and the territory which will be benefitted by the Improvements and will be assessed for the costs
of the District’s Share of Improvements as described in Section 1. The property included within
said limits and boundaries is hereby declared to be the property benefitted by the Improvements.
Section 5
General Character of the Improvements. The Improvements consist of an expanded street section
on West Oak Street and construction of North Ferguson Avenue with gravel base course material,
asphaltic cement surfacing, City standard curbs and gutters, pedestrian ramps, traffic control
signage and pavement striping, storm drains, and all related improvements. The Improvements
also include the engineering design, construction, inspection and engineering certification of
asphalt cement paving, gravel base courses and sub-grade preparation, storm drainage, and all
necessary permits and appurtenances to complete the Improvements.
Section 6
Cost of Improvements. The costs of the existing Improvements is $2,152,611.04, as shown on
Exhibit D, attached hereto (and hereby incorporated herein and made a part hereof). The City paid
$902,424.65 in Street Impact Fee funds to the costs of the Improvements. Flanders Mill
Subdivision paid $347,731.74 for its share of the Improvements to North Ferguson Avenue. The
District's Share of the Improvements is $902,424.65 and the Incidental Costs related to creation of
the District and financing the cost is estimated to be $1,000. The bond or warrant is to be issued in
the principal amount of $903,424.65.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 4 of 8
Section 7
Assessment Methods.
7.1. Property To Be Assessed. All properties in the District will be assessed
for their proportionate share of the costs of the District's Share of the Improvements
from which they derive a benefit as determined and set forth herein. District's Share
of the Improvements shall be assessed against the property in the District
benefitting from these Improvements, based on the method as authorized by §7-12-
4162, MCA, as particularly applied and set forth in Section 7.2 hereof.
7.2. Lot Area. The District's Share of the Improvements will be assessed
using the lot area method of assessment. The Engineer has determined the area of
each lot, tract or parcel, based on current recorded plats and certificates of survey
for each lot, tract or parcel of land, on file at the Gallatin County Clerk and
Recorder’s office. The total area of the District to be assessed, exclusive of streets,
roads, and rights-of-way, is 97.59 acres. The total estimated cost of the District's
Share of the Improvements including Incidental Costs to be funded through the
District is $903,424.65 and shall be assessed against each lot, tract or parcel of land
in the District for that part of the costs of the District's Share of the Improvements
that the area of such lot, tract or parcel bears to the total area of all lots, tracts or
parcels of land in the District, exclusive of streets, roads, and rights-of-way. The
estimated principal assessment for each lot, tract or parcel of land for the District's
Share of the Improvements is shown on Exhibit C hereto.
7.3. Assessment Methodology Equitable and Consistent with Benefit. This
Commission hereby determines that the method of assessment and the assessment
of costs of the District's Share of the Improvements against the properties benefitted
thereby as prescribed in this Section 7 is equitable and in proportion to and not
exceeding the special benefits derived from the Improvements by the lots, tracts
and parcels to be assessed therefore within the District.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 5 of 8
Section 8
Payment of Assessments. The special assessments for the costs of the District's Share of
the Improvements shall be payable over a term not exceeding (3) three years, each in equal semi-
annual installments of principal, plus interest, or equal semi-annual payments of principal and
interest, as this Commission shall prescribe in the resolution creating the District. Property owners
have the right to prepay assessments as provided by law.
Section 9
Method of Financing; Findings and Determinations. The total approximate costs of the
District’s Share of the Improvements and Incidental Costs will be financed by issuance of a bond
or warrant in an amount of $903,424.65, the repayment of which shall become an obligation of the
District. The principal and interest will be repaid from special assessments levied against the
property in the District.
In determining to authorize such undertakings and agreements, this Commission finds:
(a) Delinquencies. The property in the District has no delinquent taxes.
(b) The Public Benefit of the Improvements and Special Benefit to the
District Property. West Oak Street was classified in the 2007 Greater Bozeman
Area Transportation Plan, a collaborative effort between the City, Gallatin County
and the Montana Department of Transportation, as a 5-lane principal arterial
roadway. It is a critical east-west connection for vehicles, bicycles, and pedestrians
from within and outside the City. Since before the Park was constructed, it has been
within City limits but without City-standard streets, sidewalks, and gutters and
storm drains which are required of all properties within the City. The Park is owned
and operated by Gallatin County for the benefit of all citizens of Gallatin County.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 6 of 8
The Improvements benefit all Gallatin County citizens by improving traffic flow
and safety in the area of the Park.
The Improvements especially benefit the property in the District by providing
for the construction of all street facilities required by the Bozeman Municipal Code.
In addition, the Improvements to West Oak Street and North Ferguson Avenue
adjacent to the Park improve public safety, especially for users of the Park, by the
installation of through lanes, sidewalks, parking lot approaches, pedestrian ramps
and crosswalks, traffic control signage and pavement striping. West Oak Street had
no sidewalk adjacent to the Park, so the installation of a sidewalk there is an
improvement to the Park that will especially benefit its pedestrian users by
improving pedestrian safety and access to the Park by pedestrians. North Ferguson
Avenue adjacent to the Park did not exist, so its construction, along with installation
of sidewalk and other related improvements, benefits the Park and especially
benefits Park users by improving safety and adding to accessibility.
(c) Waiver of Right to Protest. A waiver of right to protest creation of a
special improvement district was executed by the predecessor in interest to the current
property owner in consideration of receiving approval for annexation of the property
into the City on October 19, 2001. In 2001, the property owner specifically waived
for itself, and its successors and assigns, the right to protest the creation of one or
more special improvement districts for street improvements including paving,
curb/gutter, signals, sidewalk, and storm drainage facilities to Baxter Lane, Davis
Lane/Fowler Road, Deadman’s Gulch Road, Ferguson Road and Oak Street; trunk
water main and appurtenances to serve the property; trunk sewer mains and sewage
lift stations to serve the property; or to make any written protest against the size or
area or creation of the district to be assessed in response to a duly passed resolution
of intention to create one or more special improvement districts which would
include the property. The waiver was recorded with the Gallatin County Clerk and
Recorder’s Office on November 14, 2001, Document No. 2053095.
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Page 7 of 8
(d) Arterial and Collector Special District. The property in the District is
not included within the boundaries of the Arterial and Collector Special District
created by Resolution 4640 on August 31, 2015.
Section 10
Public Hearing; Protests. At any time within fifteen (15) days after the date of the first publication
of the notice of the passage and approval of this resolution, any owner as defined in Section 7-12-
4112(4), MCA, of real property within the District liable to be assessed for the cost of District’s
Share of the Improvements may make and file with the City Clerk until 5:00 p.m., MT, on the
expiration date of said 15-day period (Monday, June 11, 2018), written protest against the
Improvements, or against the creation of the District or both. Such protest must be in writing,
identify the property in the District owned by the protestor and be signed by all owners of the
property. The written protest must be delivered to the City Clerk, who shall endorse thereon the
date and hour of its receipt. The Commission will at its next regular meeting after the expiration
of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear
and pass upon all such protests so made and filed; said regular meeting will be held on Monday,
the June 18, 2018, at 6:00 p.m., in the Commission Meeting Room, Bozeman City Hall, 121 N.
Rouse Avenue, in Bozeman, Montana.
Section 11
Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed to
publish or cause to be published a copy of a notice of the passage of this resolution as provided in
Section 7-12-4106, MCA, in the Bozeman Daily Chronicle, a newspaper of general circulation in
the county on May 27, 2018 and June 3, 2018 in the form and manner prescribed by law, and to
mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of
such person, firm, or corporation having real property within the District listed in the owner's name
upon the last completed assessment roll for state, county, and school district taxes, at the owners
last-known address, on or before the same day such notice is first published.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 8 of 8
Section 12
Resolution Levying Special Assessment. Pursuant to 7-12-4176, MCA, this Commission intends
to by resolution levy and assess a tax upon all benefited property in the District. A public hearing
on such resolution will be duly noticed.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 21st day of May, 2018.
___________________________________
CYNTHIA L. ANDRUS
Mayor ATTEST:
________________________________________ ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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LOLO WAY
LADUKE ST
MONIDA ST MARIAS LN LOLO WAY
LEMHI TRAIL DR CASPIAN AVE AGATE AVE LEMHI TRAIL DR CABALLO AVE VAQUERO PKWY
W OAK ST DAVIS LN VAQUERO PKWY N. Ferguson Ave. & W. Oak St. S.I.D. Exhibit A
C O U N T YCOUNTYREGIONA LREGIONALPARKPARK
Legend
Ferguson & Oak SID
Parcels
¯
578183
EXHIBIT B
Ferguson Avenue & West Oak Street SID
ADDRESS OWNER 1 OWNER 2 OWNER ADDRESS CITY STATE ZIP PARCEL NUMBER LEGAL DESCRIPTION OUTSTANDING SID ASSESSMENTS DLQ PROPERTY TAXES DLQ CITY ASSESSMENTS
4598 E. Baxter Ln., Bozeman MT 59715 Gallatin County 311 W Main Street, Rm 304 Bozeman, MT 59715-4574 RGG67297
S03, T02 S, R05 E, C.O.S. 2202B, ACRES
97.59, TRACT 3A-1 REMAINDER 0 -$ -$
579184
EXHIBIT C
Ferguson Avenue & West Oak Street SID
ADDRESS OWNER 1 OWNER 2 OWNER ADDRESS CITY STATE ZIP ASSESSABLE LOT AREA Total Assessment
4598 E. Baxter Ln., Bozeman MT 59715 Gallatin County 311 W Main Street, Rm 304 Bozeman, MT 59715-4574 97.59 acres $903,424.65
580185
EXHIBIT D
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final Construction Costs
Costs of Improvements $ 946,255.70
City Share (1/3 of Improvements) $ 299,246.98
SID Share (1/3 of Improvements) $ 299,246.98
Flanders Mill Subdivision Share $ 347,731.74
(1/3 of Improvements + 100% of Asphalt Trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final Construction Costs
Costs of Improvements $ 1,206,355.34
City Share (50%) $ 603,177.67
SID Share (50%) $ 603,177.67
TOTAL Cost of Improvements (Oak & Ferguson) $ 2,152,611.04
TOTAL SID Share of Improvements (Oak & Ferguson) $ 902,424.65
TOTAL SID Amount (including incidental expenses) $ 903,424.65
581186